During the latest episode of Inside Xbox, Microsoft pulled back the curtain on its first Digital-only Xbox One.

The Xbox One S All-Digital Edition strips the disc drive, making it the first current-gen console to entirely forgo physical media options.

Microsoft announced that the console will come with three pre-installed games: Forza Horizon 3. Sea of Thieves and Minecraft, making the USD$250 (about AUD$ 350) price point quite the bargain when factoring in the individual cost of the games included.

The upcoming console will still allow users to play 4k content from Netflix and other streaming sites.

You can check out the full episode of Inside Xbox below.

The Xbox One S All-Digital Edition is set to release on May 7 in the States, with an Australia release coming later this year.

Are you keen on a digital-only console or do you prefer to buy physical? Let us know in the comments!